Eastnine - Strong Q2 to further accelerate in Q3

Now also targeting logistics properties Recurring PTP up 31% y-o-y to EUR 2. 8m (ABGSCe 2. 6) P/EPRA NAV of 0. 91, -9% vs.

commercial peers Good outlook to meet our mid-volume acquisition scenario The acquisitions of Uniq and Zala in May were entered into around two months into the quarter at 100% occupancy. These will show full effect in Q3. The NOI margin remains high at 91%, so the improved overall vacancy more largely impacted NOI (than at a lower NOI margin) to reach EUR 4.

9m in Q2 (4. 0m) vs. ABGSCe of EUR 4.

5m. Recurring PTP amounted to EUR 2. 8m (2.

2m) vs. ABGSCe of EUR 2. 6m.

The main growth near-term will come from acquisitions and in Q2, Eastnine has added prime logistics to its targeted offering alongside prime offices. Net yields are at 6. 5-7.

0% and are expected to move decidedly downwards on the back of high Baltic e-commerce growth. Following the May acquisitions, the ‘21e rental income contribution is now just EUR 0. 7m short of our mid-volume acquisition scenario, reiterated on page 4.

Net LTV 43% and NIBD/EBIT 11. 2x, both below sector avg. The occupancy rate was back at 92.

6% (92. 6% YE’20) from 90. 7% in Q1, mainly due to the new acquisitions.

Value revisions amounted to EUR 1. 5m or 0. 4% (ABGSCe 0.

8%). EPRA NRVPS was EUR 14. 9 vs.

ABGSCe of EUR 15. 3, up 21% y-o-y and flat q-o-q. Net LTV (properties) came up due to added leverage in relation to the acquisitions, to 43.

2% in Q2 vs. 39. 4% in Q1.

Net debt/EBIT is now 11. 2x (10. 6x in Q1).

Both net LTV and net debt/EBIT are below the sector average. Other holdings generated a net contribution of EUR 3m (EUR 3. 9m in dividends and EUR -0.

9m in value changes), mainly driven by the EUR 3. 2m dividend from Melon Fashion Group. Valuation has gone up but so has the outlook The acquisitions in May and the broadening of its target market, to also include logistics properties, bodes well for future acquisition announcements.

The share trades slightly above its historical P/EPRA NAV average (0. 91 vs. 0.

88 on a 2-.